03 September 2014
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Earthport boasts confident outlook as BAML comes onstream

03 March 2014  |  2251 views  |  0 $100

AIM-listed low value payments network Earthport is reporting first half revenue growth of 88% to £3.32 million to end-December 2013, boosted by the recent acquisition of FX broker Baydonhill.

Earthport says it remains on track to achieve triple-digit revenue growth for the full year with takings in January already 25% up on the previous month as a new international agreement with Bank of America Merrill Lynch comes onstream. Under the agreement, BAML will offer Earthport's white-labelled low value payments network to its clients worldwide.

The deal, struck in December 2013, granted warrants at a strike price of 24.2 pence per ordinary share over 17.3 million new ordinary shares to BAML. The bank also retains an option on a further two million shares at 31 pence if its delivers payment revenues over and above those specified in the original contract.

Shares in Earthport are currently trading at 32.5 pence, up three percent.

Loss before taxation, acquisition costs, interest and share based payment charges stands at £3.30 million (H1 2013: £3.74 million). Cash outgoings include upfront acquisition cost net of cash acquired of £1.9 million for Baydonhill and one-off transaction costs of £0.44 million.

The company says it signed 12 new customers during the period and is currently in negotiation with others - including additional global banks - as its network reach expanded to 60 countries.

Hank Uberoi, CEO of Earthport, describes the previous six months as a "game changer" for the company. "We continue to make significant progress in becoming the white-labelled utility infrastructure, globally, for low-value cross-border payments," he says. "Looking forward, we are confident in our abilities to continue to achieve traction with top-tier institutions, implement our service across the non-live clients, further expand our country coverage, and drive towards a positive cash flow position. Visibility has increased through contracts with minimum commitments, and we are on track to deliver on our forecasted revenue growth for the full year."
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